The Paratroopers of Crony Capitalism

Why give golden parachutes to executives who leave to enter government service?

Should Big Banks provide their executives with golden parachutes to enter government service? That’s the question I asked Wall Street’s largest financial institutions several months ago—a question they haven’t shown much interest in answering.

It is also the topic of an AFL-CIO shareholder proposal that would urge companies to report which senior executives are eligible for a golden parachute and how much they would receive if they entered government service. In response, Citigroup, Goldman Sachs and Morgan Stanley are asking...